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Your state has a retail sales tax of 10% but it exempts food, prescription drugs, and all services including housing services, repair services, and consumption of electricity and other public utility services. Use supply-and-demand analysis to explain how the prices of untaxed consumption items can be affected by the retail sales tax even though they are not subject to taxation. How can changes in the prices of nontaxed items affect the incidence of the retail sales tax?
Explain how does a decrease in foreign price levels affect domestic aggregate expenditures and demand. How is the aggregate supply curve different from the supply curve for a single good, like pizza.
There are three types of plant: coal, natural gas, and hydroelectric. The three types of plants face the costs appearing in the table above.
As result government increases border patrols to catch illegal shipments. U.S. Customs agents perform DNA testing on the caviar to conclude
This deviation from the classical dichotomy and the Fisher effect is called the Mundell-Tobin effect. Explain how might you decide whether the Mundell-Tobin effect is important in practice.
Gary has two children, Kevin and Dora. Each one consumes "yummiest" and nothing else. Gary loves both children equally.
Illustrate what conclusions can you draw about this period by comparing this cycle to previous business cycles.
Explain how demand for time travel, as well as marginal income, long-run marginal cost also long-run average cost.
Suppose an individual dairy farmer in Northamptonshire decides that going price for milk is too low. Explain effects of this strategy.
Determine the impact on the economy if the central bank in U.S. used inflation targeting.
Illustrate what is the Business Cycle. Be able to describe all of its parts such as peak, trough, long-term trend, etc.
Utilizing a graph of equilibrium in the housing market, describe carefully which parties win and which parties lose from rent control.
Find U.S. civilian employment date for the last 10 years. How many more workers were there at the end of the last 10 years than at the beginning. Elucidate how did this impact the nation's production possibilities curve.
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